Slides in this set

Slide 1

Topic 4Comparative Advantage and the role of specialisation by countries Advantages for a company trading with a country that can cheaply produce goods/services…read more

Slide 2

Specialization An economy / person makes the most of their skills by focusing on what they do best. As a skilled person produces more, output per person rises. This only works when people are in a position to trade what they produce for things that they need but don't produce from abroad…read more

Slide 4

Specialisation leads to increased efficiency,higher incomes and improved living standards. Specialisation means that workers know the The business has a process as it hasn't This makes the process higher output for lower changed so they've faster and more efficient costs, can benefit from improved it and economies of scale improved itThis is then re-invested The business has a larger into the country' The government gains revenue and profit residents through more through margin from the reducedbenefit systems etc. And corporation taxes costs as a result of the raises the country's economies of scale standards of living…read more

Slide 5

The disadvantages of specialisation If demand for the product or sector falls and the business is over reliant on that product or sector it could lead to job losses and pressure on the government Domestic industries (especially infant markets) will suffer from competition with cheaper prices which could lead to job losses.…read more